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You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany

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  • Martin, Thorsten

Abstract

This paper investigates whether local politicians adjust their approval of housing licenses during election times in Germany. For my research, I use a balanced Panel of 4,983 West German municipalities from 2002 to 2010. Due to the timing of local elections in Germany, I can disentangle the election effect from common time effects. My results suggest a decrease in new construction approvals for residential housing areas during election years of around 11 % evaluated at the mean, and an increase of similar magnitude in the years following the election. Furthermore, I am able to show that the decrease during election times is associated with the share of homeowners in a municipality. Hence, my research adds to the literature on political business cycles as well as to the existing literature on homevoters and their potential effect on housing policies during election times.

Suggested Citation

  • Martin, Thorsten, 2017. "You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany," MPRA Paper 78998, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78998
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    References listed on IDEAS

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    Cited by:

    1. Hufschmidt, Patrick, 2023. "Green parties and building permissions: Evidence from Bavarian municipalities," Ruhr Economic Papers 1052, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    Urban development policies; land use regulations; homevoter; political business cycle; housing policies;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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